Philippine Management Review, Vol 20 (2013)

Problems and Conflicts in Managing International Joint Ventures in Vietnam

Pham Duc Hieu

Abstract

The paper identified and analyzed the internal problems and conflicts that are specific to international joint ventures in Vietnam. The researcher collected data from in-depth interviews and published materials on the operation of three European-Vietnamese joint ventures in Vietnam. The results show that there are significant incompatibilities between Western and Vietnamese partners and managers in joint ventures with regard to planning, decision-making, and problem solving. The findings suggest that problems and conflicts due to cultural differences— the issue of most concern to the respondents— take time and require the tolerance of foreign managers. These problems and conflicts are only recognized by one party, that of the foreign managers. In contrast, problems and conflicts caused by political ideology and parent-specific characteristics are not as serious as many people initially considered because these are mostly realized by both sides, thus making them easier to improve than those problems known by a single party.